VOLUME 46, NUMBER 21 • JULY 10, 2020
The Workplace Employer Mandates Among COVID-19: Masks, 6-Foot Rule Bills Moving in Legislature In Episode 77 When the COVID- nine still are being actively considered. of The Work- 19 crisis hit, Passed by the Senate just before leaving place podcast, legislators adopted for a brief summer break was legislation CalChamber a self-imposed that significantly burdens small employers President and limit on legislation by requiring those with only five employ- CEO Allan they would be ees to provide eligible employees with 12 Zaremberg, and pursuing this year. weeks of mandatory family leave, which CalChamber Even so, when the can be taken in increments of one to two Executive Vice summer recess hours, and threatens these small employ- President and General Counsel Erika began, significant ers with costly litigation if they make any Frank discuss best practices for enforc- employer mandates mistake in implementing the leave. ing workplace face mask and social remained alive for consideration when More litigation exposure for employ- distancing policies to ensure the safety of lawmakers return to the State Capitol. ers also will result if lawmakers adopt a employees and customers. Of 16 job killer bills identified by the pending COVID-19 employment leave For the last several months, employ- California Chamber of Commerce this year, See Employer Mandates: Page 4 ers have been busy implementing protocols to minimize the spread of COVID-19, Frank tells Zaremberg. Since June 18, when Governor Gavin Newsom issued guidance on face cover- CalChamber Compiles Resources to Help ing and social distancing requirements, the CalChamber has received many Employers Foster Diversity in the Workplace inquiries regarding the mask and six-foot California Chamber of Commerce social distancing rules, she says. members are job creators and innovators, On July 1, Governor Newsom the global and community leaders looked issued orders that closed some types of to for positive change. businesses that operated only indoors. In the unfinished effort to end racial Because the rate of COVID-19 infections injustice and inequality in the work- will determine whether businesses may place and society, the leadership of stay open, it’s important that everyone CalChamber members is needed now wears a mask, Frank stresses. more than ever. Before the state mask order was issued, To help employers foster an inclusive many employers asked the Governor to workforce and learn other ways to address establish a mandate so that the burden of systemic bias, the CalChamber has devel- See The Workplace: Page 4 oped a webpage compiling relevant infor- mation and educational resources. The Promoting Equality, Diversity Inside and Opportunity in the Workplace updates to the page with employees and • Putting Racial Justice Words webpage includes links to insightful colleagues so that together we can help podcasts, webinars, blogs, suggested forge a lasting culture of change. Be Into Action: Page 5 reading and other training materials that sure to visit the page often as it will be are useful tools in combating bias and updated regularly. • Major Bills Status Update: workplace discrimination. The webpage is located at www. Pages 7–16 Please share these items and future calchamber.com/diversity. WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 2
Labor Law Corner Why Temperature Checks, Doctor’s Note May Be OK for COVID-19 With the current coronavirus pandemic, Act (ADA) because it would either not I have been wondering what I can do to be a disability-related inquiry, or, if the protect my employees in the workplace. pandemic were truly severe, such certifi- May we take the temperature of our cation would be justified under the ADA employees before they begin working standards for disability-related inquiries each day? If I have an employee who of employees. reports that he has tested positive for As conditions continue to change, and COVID-19, can I require him to provide the various government agencies continue David Leporiere me with a doctor’s note certifying his to refine and augment their positions, we HR Adviser fitness for duty before returning to work? recommend that our members continue to Both the federal Equal Employment monitor our website for updates on these Opportunity Commission (EEOC) and related issues. and the California Department of Fair Employment and Housing (DFEH) have CalChamber Resources stated that although taking an employ- The California Chamber of ee’s body temperature is a medical Commerce COVID-19 web page includes examination and medical examinations links to federal, state and local guidance of employees during employment are on COVID-19 issues, plus CalChamber allowed only in limited circumstances, podcasts and blogs covering a multitude due to the potential of community spread of employer questions on the pandemic. of COVID-19, employers may measure The page is located at www.calchamber. employees’ body temperature. com/coronavirus. Employers are reminded, however, that taking body temperatures is allowed Column based on questions asked by callers only for the limited purpose of evaluating on the Labor Law Helpline, a service to Cali- the risk that employee’s presence poses to fornia Chamber of Commerce preferred and executive members. For expert explanations California Chamber Officers others in the workplace as a result of the COVID-19 pandemic. of labor laws and Cal/OSHA regulations, not Mark Jansen legal counsel for specific situations, call (800) Chair Doctor’s Note 348-2262 or submit your question at www. Donna L. Lucas In a frequently asked question and hrcalifornia.com. First Vice Chair answer from April 23, 2020, the EEOC Kailesh Karavadra stated that an employer may require a Second Vice Chair doctor’s note certifying fitness for duty from an employee. Gregory S. Bielli The EEOC’s rationale for its position Third Vice Chair was that such an inquiry is allowed under Next Alert: July 24 Grace Evans Cherashore the federal Americans with Disabilities Immediate Past Chair Allan Zaremberg President and Chief Executive Officer
Alert (ISSN 0882-0929) is published weekly during legislative session with exceptions by California Chamber of Commerce, 1215 K Street, Suite 1400, Sacramento, CA 95814- See calchamber.com/events 3918. Subscription price is $50 paid through membership dues. Send email address changes to alert@ for the latest list of calchamber.com. Publisher: Allan Zaremberg. Executive Editor: Ann Amioka. Art Director: Neil CalChamber-sponsored Ishikawa. Capitol Correspondent: Sara Proffit. Permission granted to reprint articles if seminars, trade shows credit is given to the California Chamber of Commerce Alert, citing original publication date of article, and reprint is emailed to Alert and webinars. at address above. Email: [email protected]. Home page: www.calchamber.com. WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 3
The Workplace Tips for Fostering Workplace Diversity In Episode 76 Albertsons’ Training Model White Fragility by Robin DiAngelo. of The Work- To address unconscious bias, Mayes explains that both books can place podcast, Albertsons Companies has developed really open one’s eyes about bias, and the CalChamber training to help the organization’s books suggest steps to lessen the impact President and 300,000+ workforce understand that of bias. CEO Allan diversity is something to continually Have Courageous Conversations Zaremberg strive for, instead of thinking of training and Albertsons as “one and done” or as a box you check It’s also important, Mayes says, to Companies and then forget about, Mayes explains. have courageous conversations about Senior Vice President of External Affairs Part of Albertsons Companies’ train- race and diversity. During the recent and Chief Diversity Officer Jonathan ing includes “behavioral nudges” or protests concerning George Floyd’s Mayes discuss the importance of diver- reminders of the benefits of diversity and death, Albertsons Companies’ CEO held sity and inclusion in the workplace, and inclusion, and what management teams a virtual town hall with many African provide best practices to help foster a can do to lessen the likelihood of bias. American associates within the organiza- diverse workforce, which will help the Zaremberg points out that company tion, to learn about their experiences and company succeed. leadership should remind those within the listen to their recommendations. Mayes, who also is a member of the company that diversity is good for busi- Having these conversations, Mayes CalChamber Board of Directors, tells ness and is therefore good for investors. tells Zaremberg, cultivates a workforce Zaremberg there are many benefits of “…We can’t stay in business unless culture which increases the understand- employing a diverse and inclusive work- we are successful and here is a good ing of the realities of bias. It also shows force, and one benefit is that diversity approach, and [an] underlying foundation employees that the company values them helps businesses be more successful. to success is diversity,” Zaremberg says. and cares about their opinions. Employers Research consistently shows that Albertsons Companies, Mayes explains, should ask what more they could do to companies which embrace diversity and started diversity and inclusion training with make their employees feel welcome, inclusion outperform those that don’t. company leaders, followed by group meet- respected and valued. For example, Mayes says, research has ings at which he discussed the business It’s about making sure you understand shown that companies in the top quartile case for increasing diversity, and shared your coworkers and the shoes they walk for gender diversity are 21% more likely personal stories of what it felt like to be in, Zaremberg adds. to experience above-average profitability discriminated against for no other reason Practice and companies in top quartile for race than for the color of one’s skin. and ethnic diversity are 33% more likely After this training, the organization Having the best of intentions is not to experience above-average profitability, began 25-minute-long interactive train- enough, Mayes points out. Employers compared with companies in the lowest ing modules that walked people through need to ensure there is a structure in place quartile. presentations and required them to in order to foster meaningful change and One way to drive home the impor- answer questions correctly before moving diversity. For example, employers should tance of diversity in the workplace to on. Module participation was required examine the percent of people of color or management teams is to make the busi- not just of management teams, but of women in their leadership and manage- ness case for it, he tells Zaremberg. every employee, Mayes says. Now, the ment teams. Is there diversity within the modules are part of new hire training. company’s hiring panels? Why Teaching Diversity Can Be Research indicates that if one out of Hard Additionally, the Albertsons Companies continues follow-up training periodically. four job candidates is a woman, and if Teaching the importance of diversity everyone on the hiring panel is male, the and inclusion can be hard because of the Resources chances of the woman candidate getting reality of unconscious bias, Mayes explains. Organizations and companies that the job is nearly zero, he says. “It’s the reality that our minds can wish to increase workforce diversity may “The reality is that there is bias and take in about 11 million pieces of data want to hire a consultant, Mayes says, until you have different structures in in any split second, but at a conscious but if the company is unable to, there are place, it’s going to be very hard to change level we are only aware of about 40,” many online and YouTube sources which it,” he tells Zaremberg. he says. “And so we reach conclusions can provide resources and ideas on how On the other side of the ledger, Mayes about people—who we want to hire, who to accomplish workforce diversity. Two continues, employers should actively we might want to promote, [and] who organizations that also can help provide strive to find underrepresented groups in we might want to develop, if you will, to resources and guidance are McKinsey & their job candidate pools. help them in their career.” Company and Lean In. Getting a diverse selection of candi- And sometimes, Mayes points out, a Mayes also recommends that employ- dates into the final slate of interview- manager will hire or promote someone ers read two books: Blindspot: Hidden ees will start to move the needle so that over someone else without even realizing Biases of Good People by Anthony management reflects the demographic of that bias factored into the decision. Greenwald and Mahzarin Banaji, and the community being served, Mayes says. WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 4
More Time to Apply for Paycheck Protection Program Loans New Deadline: August 8, 2020
Legislation signed encouraged to speak with a lender as A summary of the June 5 revisions by the President soon as possible. appeared in the June 12 Alert. last weekend The PPP Extension Act signed on July Information about the PPP loan, extends the dead- 4 extends only the loan application dead- including links to an EZ application line to apply for line and does not expand the program. requiring fewer calculations and less Paycheck Protec- Legislation signed on June 5 amended documentation for eligible borrowers, and tion Program the original PPP and aimed to clar- the full forgiveness application—both (PPP) loans to August 8, 2020. ify matters such as how and when the released on June 16—is available on An estimated $130 billion in funding funds should be spent and how to handle the U.S. Small Business Administration remains for the program, which offers re-staffing problems. web page about the program, located at loans to help small businesses with fewer The key aspect of the PPP is that the https://www.sba.gov/funding-programs/ than 500 employees stay in business and loans provided can be fully forgiven loans/coronavirus-relief-options/ keep workers employed. without repayment if the employer meets paycheck-protection-program. Employers in need of assistance and certain conditions, including spending the who have not yet obtained a loan are funds only on certain costs.
The Workplace: COVID-19: Masks, 6-Foot Rule From Page 1 include the company’s face mask policy Employers, she says, should take it upon enforcement would not fall on the business within its dress code policy or simply themselves to educate and train their community, Zaremberg explains. within its COVID-19 policy. employees on how best to protect them- The employers stated that they wanted Frank also suggests that employ- selves and their customers. Employers to keep employees and customers safe ers remind employees of the mask and should remind their employees to: and “don’t want to be the mask police,” distancing guidelines by putting up post- • Socially distance; he says. ers, and using decals or tape to measure • Wear a mask; out appropriate distancing so that people • Stay home if they are feeling unwell; CalChamber Resource Page know where to stand. and CalChamber’s COVID-19 resource Just as employers are staying on top • Wash their hands. page at www.calchamber.com/ of state rules, they also need to be aware “The most important thing is to prac- coronavirus features important informa- of what is happening locally. While the tice safety, wear a mask, and distance six tion for employers, including the state Governor has established some rules, feet for everybody who comes onto your guidance issued on June 18 on when counties are establishing rules of their premises,” Zaremberg says in closing. masks should be worn, and when there are own as well, Frank explains. Therefore, exceptions to the general rule, Frank says. employers should continually check their Subscribe to The Workplace local health department’s website for any Subscribe to The Workplace on iTunes, Best Practices local orders that are issued. Google Play, Stitcher, PodBean and Tune In. Frank recommends that once an During these unprecedented times, To listen or subscribe, visit www. employer develops its company guide- it’s important to be flexible, Frank calchamber.com/theworkplace. lines, the policy should be included in the tells Zaremberg, and studies show that employee handbook. Employers also can masks slow the spread of COVID-19.
Employer Mandates Among Bills Moving in Legislature From Page 1 Two workers’ compensation bills To see the status of these and other mandate and an expanded bereavement create an extremely concerning prece- key bills the CalChamber is tracking leave mandate. dent for expanding into the private sector on behalf of members and the business Also still alive is a proposed headcount a costly “conclusive presumption” that community, see the Status Report inside tax of $275 per employee that will punish certain workers contracted COVID-19 in this edition. certain employers who create jobs and the workplace. discourage hiring and employment growth. WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 5
Panel Discussion to Focus on Putting Racial Justice Words Into Action As part of its has held leadership roles in the public U.S. domestic trading, transportation ongoing effort to and private sectors in Sacramento and and LNG, as well as energy acquisition help employers Washington, D.C. Founder of 3.14 and divestiture projects. He currently foster an inclu- Communications, LLC, with clients in serves as Chief Diversity Officer, sive workplace, a range of sectors, she also served as Global Diversity and Ombuds Center of the California deputy chief of staff to former California Expertise. Prior assignments in Chevron Chamber of Governor Arnold Schwarzenegger. Since include Vice President, Commercial, Commerce will be presenting a panel 2016, she has been a lead facilitator Chevron IndoAsia Business Unit, which discussion next week on the role that for the American Leadership Forum’s included commercial and business racism and bias plays in the workplace. Leading Consciously trainings, providing development covering Indonesia and the The free one-hour discussion, Putting insights into unconscious (implicit) bias Philippines, and GM Commercial and Racial Justice Words Into Action: Best and its impact on societal structures and Business Development for Chevron’s Practices and Strategies for California institutions. She lives in Sacramento. Asia South Business Unit which includes Businesses, will begin Wednesday, July Bangladesh, Myanmar, China, Thailand, 15 at 8 a.m. via Zoom. • Audra Cambodia and Vietnam. He resides in Leading the event will be Cassandra Bohannon has Houston, Texas. Pye, Executive Vice President and Chief delivered stra- Strategy Officer for Lucas Public Affairs. tegic leadership • Jonathan Joining her will be: and business Mayes began • Jonathan Mayes, Senior Vice consultation his legal career President of External Affairs and Chief solutions for in the San Diversity Officer at Albertsons; more than 30 Francisco area, • Leland Jourdan, Chief Diversity years. She where he now Officer for Chevron Corporation; and is based in resides. He • Audra Bohannon, Senior Client Korn Ferry’s joined Safe- Partner at Korn Ferry. Boston office. way in 1994, Together, this esteemed group will Audra Bohannon Her portfolio continuing as lend their expertise on a wide range of of client organizations served includes a senior vice issues related to bias including the ways broad range of U.S. and global industries president when company leadership can respond to and businesses. She has provided execu- Jonathan Mayes the company racism and move the needle on diversity tive coaching for positions ranging from merged with Albertsons in 2015. He has in their organizations; how bias influ- C-level executives to entry-level individual held leadership positions in government ences decision-making, hiring, promo- contributors and is a frequent conference relations, public affairs, sustainability, tions and retention; and education and speaker, panel moderator, seminar facili- philanthropy, and diversity and inclusion. training programs to move workers into tator and thought driver on topics related He is a Certified Diversity Executive and management. to development, inclusion and diversity. frequent presenter at conferences and Her message is: “Lead life by design, not universities across the United States. He About the Panelists by default.” Her many white papers and also is a professional musician, arranger • Cassandra articles also emphasize this theme. and band leader. Pye has provided stra- • Leland (Lee) Registration tegic counsel T. Jourdan To register for the panel discus- in commu- has been in sion, visit https://calchamber. nications, the energy zoom.us/webinar/register/ government, industry since WN_AvkZZMyxSWW18LS-b-FmDg politics and 1983, a career advocacy to that spans the corporate inter- regulated and ests in global, deregulated national, state landscape Cassandra Pye and local of energy arenas for 35 years. She joined Lucas commodities, Public Affairs in November 2019 and Leland T. Jourdan including WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 6
2020 State Budget Depends on Borrowing, New Taxes and Action by Congress The new state $13 billion in payments into the next fiscal tive bargaining agreements will provide budget went into year to preserve programs and provide the employees continue to work their effect on time last K–14 schools the resources needed to regular hours at a lower pay rate, but also week, after Gover- safely reopen. The accompanying legisla- collect two “personal leave program” nor Gavin Newsom tion also prohibited any layoffs of teachers days per month, which can be used at any signed 20 bills or certain other staff for the next year. time, including cashed out upon separa- enacting hundreds On the other hand, the state’s four- tion—presumably at a higher salary rate. of pages of new year colleges and universities will suffer legislation and greater reductions than the Governor Other Elements spending authority. originally proposed. The University of Besides the tax increases, key But even then the California and California State University elements of the budget solution include: job is likely only partially complete. will see their spending reduced by a total • Reserves: The budget draws down Decisions about billions of dollars in of $550 million from the current year. $8.8 billion in reserves from the Rainy possible future program reductions for If Congress provides additional Day Fund and other reserves. public schools, higher education, and financial assistance to states, then some • Triggers: The budget includes $11.1 the social safety net are hanging on three or all of the cuts could be restored, or billion in reductions and deferrals that events outside the control of Sacramento the systems could see their budgets will be restored if at least $14 billion in political leaders: revenues from delayed increased, depending on the generosity of federal funds are received by October 15. filing of 2020 income taxes (now due on Congress. In the absence of congressional If the state receives a lesser amount, the July 15), the trajectory of the economic bailout, the most likely scenario would be reductions and deferrals will be partially recovery from the pandemic-induced student tuition increases. restored. recession, and any fiscal relief provided • Borrowing/Transfers/Deferrals: by Congress. Tax Increases The budget includes $9.3 billion in The Governor signed tax increases, special fund borrowing and transfers, as Education primarily on businesses, totaling about well as other deferrals for K–14 schools. Nobody has a bigger stake in the $8.7 billion over the next three years. The • Better revenue outlook: The budget uncertainty than the public schools. bulk of these tax increases comprise a is based on a slightly better revenue fore- The $202 billion budget gener- three-year suspension of the net operating cast than the Governor projected in May. ally maintains spending on education loss deduction and $5 million-per-year The legislative session continues to at current levels—a far better outcome limit on utilization of tax credits. Those the end of August. By then, the state’s for schools than the Governor’s revised tax changes are retroactive to January economic and revenue outlook will be proposal last month. The budget draws 1, and will apply to the 2020, 2021 and better known, as will any action (or down reserves and targets the initial 2022 tax years. nonaction) by Congress. The Legislature congressional CARES Act state allocation Most state employees will not be and Governor may continue to tinker to offset the more than $10 billion in reve- taking the 10% pay reduction proposed with the budget into the late summer. nue losses to K–14, and defers another by the Governor in May. Instead, collec- Contact: Loren Kaye WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 7
CalChamber Status Update Report on Major Legislation for Business The following list summarizes top prior- September 30 is the last day for the effect immediately upon being signed. In ity bills for the California Chamber of Governor to sign or veto bills passed by those cases, the date the Governor signed Commerce and their status as of July 2, the Legislature before September 1 and the bill is noted. when the Senate began its summer recess. in the Governor’s possession on or after Each fall, the CalChamber publishes Within each subject area, the list pres- September 1. a record of legislators’ votes on key bills ents bills in order of priority with the The CalChamber will publish its final affecting the California business climate. highest priorities at the top. status report, showing the ultimate fate Generally, the bills selected for the vote The CalChamber will publish a second of bills sent to the Governor this year, in record have appeared in one of the status status report in September, showing the October. reports. This year’s vote record is sched- status of priority legislation when the Bills signed by the Governor will uled to be published on October 23. Legislature begins its final recess on become law on January 1, 2021. Urgency, August 31. tax and budget-related measures go into
Status of legislative action on bills as of July 2, 2020. Dates listed are the date the bill was assigned to a committee, the latest date of committee action, the next hearing date or when the bill reached the Senate or Assembly floor, unless action is stated. *Bill was introduced at the beginning of this year, but at the request of the author, did not move through the legislative process once the Legislature returned from the shelter in place order that was issued as a result of the COVID-19 pandemic.
Subject—CalChamber Position Status Agriculture, Food and Natural Resources
Redundant Reporting Requirement. SB 86 (Durazo; D-Los Angeles) Imposes unnecessary and costly Assembly reporting requirements. Mischaracterizes the use and risk of a highly regulated pesticide critical to disease Environmental Safety prevention in citrus. Oppose. & Toxic Materials 5/18/20
*Dispute Resolution. AB 2607 (Mathis; R-Visalia) Helps landowners resolve disputes over regulatory In Assembly Water, conflicts with the Department of Fish and Wildlife. Support Parks and Wildlife 3/5/20; Failed Deadline Air Quality
Chooses Winners and Losers. AB 40 (Ting; D-San Francisco) Reduces customer choice in electric vehi- Assembly Natural cles by banning the sale of all but a few manufacturers’ vehicles unless they enter into an “agreement” with Resources 1/9/20; California. Oppose/Former Job Killer 2019. Failed Deadline Banking and Finance
New Onerous Burdens on Lenders. AB 2501 (Limón; D-Santa Barbara) Jeopardizes credit availability for Failed passage in consumer loans in future years. Imposes onerous obligations on financial lenders to carry home, mobile home, and Assembly 6/15/20 auto loans for extended periods of time without receiving payments from borrowers. Oppose/Job Killer 2020. WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 8
Subject—CalChamber Position Status California Environmental Quality Act (CEQA)
Expansion of CEQA. SB 950 (Jackson; D-Santa Barbara) Expands CEQA’s existing requirements by adding Failed passage in costly new mandates that will burden local agencies, add substantial time and costs to the CEQA process and Senate Environmental provide project opponents with new legal arguments to delay or block housing and other projects. Oppose/Job Quality 5/29/20; Killer 2020. Failed Deadline
Expands CEQA’s Existing Requirements. SB 55 (Jackson; D-Santa Barbara) Adds substantial time and Assembly Public costs to the CEQA process and provides project opponents with new legal arguments to delay or block hous- Safety 6/3/19 ing and other projects. Almost identical to SB 950. Oppose.
CEQA Streamlining. AB 3279 (Friedman; D-Glendale) Helps housing production in California by making Senate Environmental modest changes to CEQA by reducing the deadline for a court to commence hearings from one year to 270 Quality 6/23/20 days, allowing a lead agency to decide whether a plaintiff prepares the administrative record, and authorizing a court to issue an interlocutory remand as a remedy for any alleged violations. Support.
CEQA Streamlining. SB 995 (Atkins; D-San Diego) Provides CEQA streamlining benefits for smaller hous- Assembly Natural ing projects that include a certain percentage of affordable housing and agree to certain labor provisions, as Resources 6/29/20 well as broadens the application and utilization of the Master Environmental Impact Report (MEIR) process, which allows cities to do more upfront planning. Support. Climate Change
Imposes Significant Costs on Food Providers. AB 2954 (Robert Rivas; D-Hollister) Unnecessarily compli- Senate Environmental cates and increases costs of farming and rangeland practices by imposing a statewide goal of carbon seques- Quality 6/23/20 tration on all natural and working lands. Threatens to pit districts and crops against other districts and crops based on potential for carbon sequestration, threatening diversity of food production in California. Oppose.
Exacerbates Housing Costs. SB 986 (Allen; D-Santa Monica) Adds to already-high costs of housing devel- Senate Natural opment by adding additional authority for California Coastal Commission to regulate greenhouse gases. Resources & Water Duplicates authority of sister agencies. Oppose. 2/20/20; Failed Deadline Education
Expanding College and Career Access Pathways. AB 2019 (Holden; D-Pasadena) Expands existing College Senate Education and Career Access Pathway Program to help improve high school graduation rates and college attendance 6/23/20 rates, thereby helping to address California’s need for technical and high-skill workers. Support.
Federally Preempted Limitation on Arbitration. AB 3271 (Kiley; R-Roseville) Creates a federally Senate Judiciary preempted right for minors to disavow an arbitration clause—but no other provisions—in enrollment agree- 7/1/20 ments signed by their parents. Oppose. Energy
Threatens Grid Reliability and Safety. SB 378 (Wiener; D-San Francisco) Penalizes the use of approved Assembly Utilities & grid safety procedures and creates conflicts and redundancies that will impact electricity rates and threaten Energy 6/18/20 grid reliability. Oppose Unless Amended. WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 9
Subject—CalChamber Position Status
Rate Increase. SB 1403 (Hueso; D-San Diego) Increases spending in home energy efficiency program Assembly Utilities & beyond current plan year expenditures, resulting in substantial additional costs that will be passed along to Energy 6/29 /20 ratepayers in the form of increased rates. Oppose Unless Amended. Elections and Fair Political Practices
Legislature Remote and Proxy Voting and Appointment of Successors to Power. ACA 25 (Mullin; D-South Senate Rules 6/15/20 San Francisco) Grants vast power to members of the Legislature, allowing them to attend remotely and even surrender their votes to individuals who were not elected to represent their districts. Further, this Assembly Constitutional Amendment (ACA) allows legislators to appoint successors to power, thereby subverting the will of the voters by denying citizens the right to vote for their representatives. Oppose Unless Amended. Environmental Regulation
Oil and Gas Development Ban. AB 345 (Muratsuchi; D-Torrance) Eliminates thousands of high paying Senate Natural California jobs and requires California to import even more foreign oil by banning new oil and gas devel- Resources & Water opment, re-drilling operations, and rework operations by imposing a state minimum 2,500-foot setback 7/1/20 requirement from certain structures, and further authorizing local governments to enact even greater setback requirements, without limitation. Oppose/Two Year Job Killer. Gaming/Alcohol
Business Expansion. AB 2459 (Bigelow; R-O’Neals) Increases the number of liquor licenses in Mariposa Senate Governmental County for new restaurants. Support. Organization 6/23/20 Hazardous Waste
Firefighting Foam. SB 1044 (Allen; D-Santa Monica) Prohibits the use of PFAS chemicals in firefight- Assembly ing foam without a viable alternative to extinguish extremely high temperature liquid fires at refineries and Environmental Safety airports. Oppose Unless Amended. & Toxic Materials 6/29/20
Hazardous Waste Disposal. AB 2920 (Obernolte; R-Big Bear Lake) Encourages more businesses to prop- Senate Environmental erly manage and treat their wastes, lower costs on businesses and consumers and improve the efficiencies of Quality 6/29/20 the Department of Toxic Substances Control (DTSC) by allowing consolidated manifests that would permit disposal of certain materials using less truck trips. Support. Health Care
Increases Health Care Costs. AB 2203 (Nazarian; D-Van Nuys) Increases health care costs by capping cost Senate Health 6/23/20 sharing for insulin prescriptions at $50 for 30-day supply and no more than $100 total per month, regardless of the amount or type of insulin ordered. Oppose.
*Increases Health Care Premiums. SB 854 (Beall; D-San Jose) Increases health care premiums by mandat- Senate Health ing lowest-tier coverage of all Food and Drug Administration (FDA)-approved outpatient prescription medica- 1/22/20; Failed tion related to treatment of substance use disorders and by eliminating all quality control and cost containment Deadline mechanisms. Oppose. WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 10
Subject—CalChamber Position Status
Prevents Health Systems from Executing Prudent Business Decisions. SB 977 (Monning; D-Carmel) Assembly Health Presumptively characterizes health system mergers, affiliations, sales or acquisitions as anticompetitive and 6/29/20 gives the Attorney General unnecessary and overbroad power to reject this market activity. Oppose.
Wellness Programs. AB 648 (Nazarian; D-Van Nuys) Imposes stringent requirements on already federally Senate Health 6/23/20 regulated wellness programs and creates employer liability for violations of those requirements which will discourage and likely eliminate the potential or voluntary workplace wellness programs that benefit employ- ees and contribute to a healthy workforce. Oppose.
*Locking Vial Mandate for Schedule II Drugs. SB 1084 (Umberg; D-Santa Ana) Increases prescription Senate Business, drug prices by requiring nonhospital pharmacies to dispense Schedule II and IIN drugs in a lockable vial in Professions addition to distributing educational materials to the patient regarding the drug. The drug manufacturer would & Economic be required to reimburse the pharmacy for the lockable vial cost and that cost will likely be passed on to the Development 5/12/20; consumer. Oppose. Failed Deadline
Increases Health Care Costs. AB 2360 (Maienschein; D-San Diego) Increases health care costs by requiring Senate Health 7/1/20 the establishment and provision of a dedicated maternal and child psychiatric telehealth consultation program for providers. Oppose.
Increases Health Care Premiums and Exceeds Medical Service Parity. SB 855 (Wiener; D-San Francisco) Assembly Health Increases health care premiums by mandating coverage for mental health conditions and substance use disor- 6/29/20 ders beyond other medical services. Additionally, mandates out-of-network providers be compensated their fully billed rates. Oppose. Housing and Land Use
Inclusionary Housing Requirement. AB 725 (Wicks; D-Oakland) Before amendments, exacerbated Senate Housing California’s housing crisis by imposing a statewide, indirect inclusionary housing requirement that prohibited 6/23/20 local jurisdictions from allocating more than 20% of their share of regional housing need for above moder- ate-income housing in areas zoned for single-family development. Opposition and job killer status removed due to January 6, 2020 amendments. No Position/Former Job Killer 2019.
Prohibits Unlawful Detainer Actions. AB 828 (Ting; D-San Francisco) Leads to foreclosures and a divest- Senate Judiciary ment in California by prohibiting residential evictions, reducing tenant rent by 25% for a year, and requiring the 7/1/20 tenant to make monthly payments to the landlord for any tenants financially impacted by COVID-19. Oppose.
Tenant Relief. AB 1436 (Chiu; D-San Francisco) Forces rental property owners to forgo collecting rent for Senate Judiciary the entire duration of the state of emergency or until April 1, 2021 (whichever comes first) and prohibits 7/1/20 owners from being able to try and collect unpaid rents for an additional 12 months after that, with no financial assistance for landlords who are unable to meet their financial obligations. Oppose.
Development Ban. SB 474 (Stern; D-Canoga Park) Prohibits any residential or commercial construction in Assembly Local either Very High Fire Severity Zones or State Responsibility Area, which effectively bans any development Government 6/29/20 activity for one-third of the State of California. Oppose.
Residential Security Deposits. AB 3260 (Wicks; D-Oakland) Adds significant risks to landlords and nega- Assembly Floor tively impacts tenant by requiring landlords to allow new tenants to pay a security deposit over a 6-month 6/8/20; Failed period or obtain a security deposit insurance policy. Oppose Unless Amended. Deadline
Commercial Tenant Relief. SB 939 (Wiener; D-San Francisco) Leads to foreclosures and divestment in Held in Senate California by prohibiting commercial evictions and allowing commercial tenants to withhold rent for the Appropriations entire duration of the COVID-19 state of emergency plus an additional 12 months, as well as unilaterally Suspense File 6/18/20 break leasing contracts. Oppose Unless Amended. WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 11
Subject—CalChamber Position Status
Housing Production. AB 3155 (Robert Rivas; D-Hollister) Encourages construction of more entry-level Assembly homes in California by streamlining small-home projects that comply with local zoning and removing barriers Appropriations to selling these homes, while also creating jobs for local construction workers. Support. Suspense File 6/2/20; Failed Deadline
Promotes Housing. SB 1120 (Atkins; D-San Diego) Increases housing production in California and encour- Assembly Local ages more small-scale neighborhood development by creating a ministerial approval process for duplexes and Government 6/29/20 other specified acts. Support.
Promotes Housing. SB 899 (Wiener; D-San Francisco) Streamlines affordable housing projects by permitting Assembly Housing 100% multifamily affordable housing units (targeted at 80% of Area Median Income and below), regardless of & Community local zoning restrictions, on land owned in fee simple by religious and educational institutions. Support. Development 6/29/20
Promotes Housing. SB 902 (Wiener; D-San Francisco) Promotes housing and provides maximum local Assembly Local authority to local governments to increase the baseline zoning for residential properties and bypass California Government 6/29/20 Environmental Quality Act (CEQA) review if they rezone for small developments of up to 10 units. Support.
Promotes Housing. SB 1085 (Skinner; D-Berkeley) Increases housing production by mandating that a city or Assembly Housing county grant a density bonus if the residential developer agrees to the specified percentage of units for persons & Community and families of moderate income. Support. Development 6/29/20
Promotes Housing. SB 1385 (Caballero; D-Salinas) Authorizes residential development on existing lots Assembly Local currently zoned for commercial office and retail spaces so long as the residential development maintains a Government 6/29/20 minimum of 20 units per acre and abides by existing local planning and development ordinances, among other requirements. Support.
Rental Assistance Program. SB 1410 (Caballero; D-Salinas) Helps tenants stay in their residences by creat- Assembly Judiciary ing a temporary emergency rental assistance program to provide rental payments for tenants who are unable to 6/29/20 pay rent due to COVID-19. Support. Industrial Safety and Health
Labor Contractor Joint Liability. AB 2043 (Robert Rivas; D-Hollister) Expands joint liability for contracted Senate Labor, Public supervisors to all employment-related harassment claims. There is no basis for holding a business that Employment & contracts for services statutorily liable for the harassment of another’s employees when there is no way in Retirement 7/1/20 which that contractor can engage or force a labor contract company to comply with provisions of the Fair Employment and Housing Act or the Labor Code. Oppose. Labor and Employment
New COVID-19 Employment Leave Mandate. AB 3216 (Kalra; D-San Jose) Imposes an onerous and Senate Labor, Public stringent process for specific employers to return employees to the workforce, which will delay rehiring and Employment & subject employers to litigation for any alleged mistakes. Also increases burdens on small employers who Retirement 7/1/20 are currently suffering as a result of this pandemic, by increasing paid and unpaid time off for employees. Oppose/Job Killer 2020. WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 12
Subject—CalChamber Position Status
Increased Costs and Liability on Employers. SB 1399 (Durazo; D-Los Angeles) Significantly increases Assembly Labor & the burden on nonunionized employers in the garment manufacturing industry in California by eliminating Employment 6/29/20 piece rate as a method of payment even though it can benefit the employee, creating joint and several liabil- ity for contractors for any wage violations or the employer, and shifting the evidentiary standards in a Labor Commissioner hearing to limit the ability for an employer to defend against an alleged wage violation. These additional requirements will encourage companies to contract with manufacturers outside of California, thereby limiting the demand and workforce of garment manufacturers in California. Oppose/Job Killer 2020.
Burdensome New Bereavement Leave Mandate. AB 2999 (Low; D-Campbell) Imposes a significant new Senate Judiciary burden on employers of every size by mandating that they provide employees up to 10 days of bereavement 7/1/20 leave upon the death of a spouse, child, parent, sibling, grandparent, grandchild, or domestic partner, regard- less of how long the employee has worked for the employer. The bill further opens up new avenues for litiga- tion against California employers by establishing a brand-new private right of action (in addition to liability under Private Attorneys General Act and administrative enforcement through the Division of Labor Standards Enforcement). Oppose/Job Killer 2020.
Employees: Time Off. SB 1383 (Jackson; D-Santa Barbara) Significantly burdens small employers by requir- Passed Senate 7/2/20 ing employers with only five employees to provide eligible employees with 12 weeks of mandatory family leave, which can be taken in increments of one to two hours, and threatens these small employers with costly litigation if they make any mistake in implementing this leave. Oppose/Job Killer 2020.
Independent Contractor Status. SB 900 (Hill; D-San Mateo) Makes additional changes to AB 5 from last Senate Labor, Public session. However, additional similarly situated industries/professionals should also be included in the exemp- Employment & tions, and the “business-to-business” exemption enacted in AB 5 needs to be fixed to cover more individuals/ Retirement 2/12/20; entities. Support If Amended. Failed Deadline
Local Wage Standards. AB 3075 (Lorena Gonzalez; D-San Diego) Allows interference with corporate forma- Senate Labor, Public tion based on arbitrary, unclear and unfair standards. The bill would also result in chaotic and inconsistent Employment & enforcement of wage and hour laws by local jurisdictions by authorizing them to impose their own wage payment Retirement 7/1/20. requirements as long as they are “at least as stringent” as state law requirements. Oppose/Job Killer 2020.
Increased Cost and Litigation on Warehouse Distribution Centers. AB 3056 (Lorena Gonzalez; D-San Senate Labor, Public Diego) Grants expansive authority to the State of California to dictate the operations and performance stan- Employment & dards of employees at warehouse distribution centers, increases hourly rates of pay, imposes new manda- Retirement 7/1/20 tory break periods, and exposes employers to layers of penalty and costly litigation under PAGA, which will severely limit these employers’ ability to expand their workforce or increase employee benefits. Oppose.
Disclosure of Company Pay Data. SB 973 (Jackson; D-Santa Barbara) Requires California employers to Assembly Labor & submit pay data to state agencies that could give the false impression of wage disparity where none may exist. Employment 6/29/20 Also creates confusion by allowing two different state agencies to enforce Equal Pay Act claims. Oppose.
Imposes New One-Sided Attorney’s Fee Recovery. AB 1947 (Kalra; D-San Jose) Undermines the essence Senate Judiciary of the Division of Labor Standards Enforcement (DLSE) complaint process by requiring a one-sided attor- 7/1/20 ney’s fee provision that will incentivize further litigation. Oppose.
Prevailing Wage. AB 2231 (Kalra; D-San Jose) Codifies a limited definition of the term “de minimis” to Senate Labor, Public determine what level of public subsidy triggers prevailing wage requirements on an otherwise private project, Employment & overturning the established practice of viewing the subsidy in the context of the entire project. Oppose. Retirement 7/1/20
Independent Contractor Status. SB 806 (Grove; R-Bakersfield) Provides necessary flexibility to the ABC Failed passage in test so that individuals who choose to be independent contractors can continue to work and earn income. Senate Labor, Public Support. Employment & Retirement 5/14/20 WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 13
Subject—CalChamber Position Status
Required Disclosures. SB 1102 (Monning; D-Carmel) Establishes new unnecessary and burdensome require- Assembly Labor & ments on all employers to provide information to employees and imposes duplicative and unnecessary disclo- Employment 6/29/20 sure requirements for employers of H-2A employees. Oppose.
Mandated Scheduling Requirement. SB 850 (Leyva; D-Chino) Previously identified as a 2020 Job Killer. Senate Labor, Public Author has indicated she is no longer pursuing the bill this year. Eliminates worker flexibility and exposes Employment & employers to costly penalties, litigation, and government enforcement, by mandating employers in the retail, Retirement 5/12/20; grocery, or restaurant industry, including employers who have hybrid operations that include a retail or restau- Failed Deadline. rant section, to provide a 21-day work schedule and then face penalties and litigation if the employer changes the schedule with less than 7 days’ notice. Oppose/Previously Identified Job Killer 2020.
Independent Contractor Status. AB 1850 (Lorena Gonzalez; D-San Diego) Makes additional changes to AB Senate Labor, Public 5 from last session. However, additional similarly situated industries/professionals should also be included in Employment & the exemptions, and the “business-to-business” exemption enacted in AB 5 needs to be fixed to cover more Retirement 7/1/20 individuals/entities. Support If Amended.
Independent Contractor Status. AB 2257 (Lorena Gonzalez; D-San Diego) Makes additional changes to AB Senate Labor, Public 5 from last session. However, additional similarly situated industries/professionals should also be included in Employment & the exemptions, and the “business-to-business” exemption enacted in AB 5 needs to be fixed to cover more Retirement 7/1/20 individuals/entities. Support If Amended.
Expanded Leaves of Absence. AB 2992 (Weber; D-San Diego) Expands three separate leaves of absence Senate Labor, Public on small and large employers with multiple threats of litigation despite the enormous financial strain all size Employment & employers are dealing with as a result of the COVID-19 pandemic. This increased burden will limit employ- Retirement 7/1/20 ers’ ability to recover, including rebuilding their workforce. Opposition and job killer tag removed due to May 11, 2020 amendments. No Position/Former Job Killer 2020.
Rest Period Exemption. AB 2479 (Gipson; D-Carson) Extends an existing exemption to the rest period Senate Labor, Public requirements for employees at a petroleum facility who work in safety-sensitive positions. No Position. Employment & Retirement 6/23/20 Legal Reform and Protection
Legal Reform. AB 2143 (Mark Stone; D-Scotts Valley) Allows employers to maintain a safe workplace by Senate Judiciary prohibiting an employee who has engaged in criminal conduct from seeking reemployment. Support. 6/23/20
Expanding False Claims Act to Include Tax Filings. AB 2570 (Mark Stone; D-Scotts Valley) Expands the Senate Judiciary False Claims Act to allow the Attorney General and private attorneys to sue taxpayers on perceived tax errors, 7/1/20 creating inconsistent tax enforcement, litigation, and nuisance suits for taxpayers. Oppose.
Strict Product Liability for Online Marketplaces. AB 3262 (Mark Stone; D-Scotts Valley) Under AB 3236, Senate Judiciary online marketplaces are strictly liable for all products sold by third parties on their electronic marketplaces 7/1/20 when the electronic marketplace receives payment from consumers for new products sold on the electronic marketplace. Oppose.
Third Party Food Delivery. AB 3336 (Carrillo; D-Los Angeles) Imposes onerous unnecessary and new Senate Health 7/1/20 requirements on Californians looking for work delivering food and restaurants seeking to reach new custom- ers through delivery. This is not the time to be introducing new burdens on food delivery, restaurants, grocery stores and other retail locations, especially while those businesses are struggling to meet demand or stay open during the current crisis. Oppose. WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 14
Subject—CalChamber Position Status
Limitations on Subscriptions and Auto Renewal Offers. AB 2811 (Berman; D-Palo Alto) Requires any busi- Senate Judiciary ness offering an auto-renewal or continuous service offer to provide the consumer with a notice explaining how 7/1/20 to cancel an automatic renewal offer or continuous service offer given certain requirements are met. Oppose.
*Increased Litigation. SB 873 (Jackson; D-Santa Barbara) Previously identified as a 2020 Job Killer. Author Senate Judiciary has indicated she is no longer pursuing the bill this year. Exposes businesses to costly litigation for a consum- 5/12/20; Failed er’s assertion that any price difference on “substantially similar” goods, even a nominal amount, is based on Deadline gender and therefore the consumer is entitled to a minimum of $4,000. Oppose/Previously Identified Job Killer 2020.
Judicial Council Authority in State of Emergencies. AB 3366 (Committee on Judiciary) Before amend- Senate Judiciary ments, would have effectively tolled statute of limitations for all civil actions in California indefinitely when- 7/1/20 ever there is a state of emergency. Opposition removed due to May 28, 2020 amendments. No Position. Privacy and Cybersecurity
CCPA Health Research Exemption. AB 713 (Mullin; D-South San Francisco) Promotes continued clinical Senate Judiciary trials and regulated biomedical research by exempting from the California Consumer Privacy Act (CCPA) 6/11/20 information that has been deidentified in accordance with the Health Insurance Portability and Accountability Act (HIPAA). Support.
Digital Health Systems as Health Care Providers. AB 2280 (Chau; D-Monterey Park) Classifies any Senate Judiciary Food and Drug Administration (FDA)-approved device or software that collects personal information for the 7/1/20 purposes of the Confidentiality of Medical Information Act (CMIA) in any form to be a “health care provider” and appropriately regulated as such. Oppose.
Mandatory Cyber Insurance. AB 2320 (Chau; D-Monterey Park) Requires a contractor doing business with Failed passage in a state agency to require, by contract, that the contractor maintain cyber insurance if the contractor anticipates Assembly Privacy & receiving or has access to records containing personal information protected under the information practices Consumer Protection act of 1977. Oppose. 5/5/20
*Limits on Government Access to Consumer Data. AB 3116 (Irwin; D-Thousand Oaks) Places limitations Held in Assembly on the data that government entities can demand from any entity that makes transportation devices and vehi- Appropriations cles available to the public. This includes but is not limited to autonomous vehicles, bicycles, and scooters that Suspense File 6/2/20; are offered or placed for rent in public. Support. Failed Deadline Product Regulation
Cosmetic Product Ban. AB 495 (Muratsuchi; D-Torrance) Bypasses a legislatively mandated analytical Failed passage in process to judge the safety of consumer products and seeks to prohibit safe cosmetic products based upon the Assembly Health mere presence of a chemical in the product, no matter the level, that will lead to potential regrettable substitu- 1/17/20 tions and job losses in the cosmetic industry. Oppose/Two Year Job Killer.
Unprecedented Product Regulation in California. SB 54 (Allen; D-Santa Monica) Before amendments, Assembly Inactive substantially increased the cost to manufacture and ship consumer products sold in California by providing File 1/23/20 CalRecycle with broad authority to develop and impose costly and unrealistic new mandates on manufacturers of all single-use packaging and certain single-use plastic consumer products under an unrealistic compliance time frame that failed to address California’s lack of recycling and composting infrastructure. Job killer status removed due to September 6, 2019 amendments, but CalChamber still opposes. Oppose Unless Amended/ Former Job Killer 2019. WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 15
Subject—CalChamber Position Status
Ingredient Ban in Personal Care Products. AB 2762 (Muratsuchi; D-Torrance) Before amendments taking Senate Environmental CalChamber to no position, the bill would have inconsistently prohibited certain specified ingredients in Quality 7/1/20 cosmetic products leading to products effectively banned or costly reformulations if even possible. No Position.
Overreaching Performance Standard. AB 1672 (Bloom; D-Santa Monica) Before amendments, imposed a Senate Environmental new performance standard on flushable wipe products that would effectively ban most flushable wipes from Quality 7/1/20 the North American market without a sound scientific basis. CalChamber removed opposition and now has no position on the bill due to July 1, 2020 amendments. No Position.
Feminine Care Product Regulation. AB 1989 (Cristina Garcia; D-Bell Gardens) Before amendments taking Senate Health 7/1/20 CalChamber to no position, the bill had unclear requirements on what manufacturers were required to disclose. After amendments, the expected scope of disclosure manufacturers were required to provide was unambiguous, ensuring consistency across products and helping consumers make informed decisions. No Position. Taxation
Headcount Tax. AB 398 (Chu; D-San Jose) Punishes certain employers who create jobs and discourages Senate Governance & hiring and employment growth by imposing a headcount tax of $275 per employee. Oppose/Job Killer 2020. Finance 7/1/20
Staggering Corporate Tax Hike. SB 37 (Skinner; D-Berkeley) Imposes a targeted tax on California busi- Secretary of Senate ness, which, for certain companies, would raise California’s corporate tax rate—already one of the highest in 2/3/20 the nation—up to a staggering 22.26%, which amounts to an increase of about 150% and would undoubtedly discourage companies from locating or further investing in the state. Oppose/Two Year Job Killer.
Targeted Tax on Oil and Gas Operators. SB 246 (Wieckowski; D-Fremont) Unfairly targets one industry by Secretary of Senate imposing a 10% oil and gas severance tax onto an oil and gas operator, adding another layer of taxes onto this 2/3/20 industry that will significantly increase the costs of doing business, thereby increasing prices paid by consum- ers for goods and services in this expensive state as well. Oppose/Two Year Job Killer.
Corporate Shaming Tax Disclosure. SB 972 (Skinner; D-Berkeley) Pierces the traditional shield of taxpayer Assembly Revenue & confidentiality that has been respected by generations of political and government leaders by requiring the Taxation 6/29/20 Franchise Tax Board to disclose all taxpayers’ identities and tax credits if their gross receipts are $5 billion or more. Oppose.
Unnecessary Commission to Study Tax Expenditures. SB 956 (Jackson; D-Santa Barbara) Creates an Assembly Revenue & unnecessary commission to study tax expenditures that will cause uncertainty for businesses due to the poten- Taxation 6/29/20 tial of increasing taxes by $20 billion. Oppose.
Disaster Relief to Homeowners and Businesses Seeking to Rebuild. AB 2013 (Irwin; D-Thousand Oaks) Senate Governance & Provides greatly needed assistance to victims of natural disasters who choose to reconstruct destroyed homes Finance 6/23/20 and business structures on the original site of the disaster, by exempting this reconstruction from being assessed at a higher tax rate. Support. Telecommunications
*Restrictions on Contacting Consumers. AB 3007 (Chau; D-Monterey Park) Prohibits businesses from Assembly using automated calls and texts to communicate with customers and business relations, and expands the Appropriations application of this restriction to any device that stores phone numbers and can automatically dial or send text 5/6/20; Failed messages to those numbers “without significant human involvement,” which is undefined. Oppose. Deadline WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 16
Subject—CalChamber Position Status
*Mandatory Financial Disclosures and Reporting Requirements for ISPs. SB 1058 (Hueso; D-San Diego) Held in Senate Creates a financial disclosure requirement in addition to an onerous annual reporting mandate that requires Appropriations internet service providers (ISPs) to file annual emergency operations plans with the California Public Utilities Suspense File 6/18/20 Commission, but the regulatory scheme proposed by SB 1058 is preempted by federal law. Oppose.
*Critical Infrastructure Reporting and Disclosure, Telecommunications. SB 1069 (Jackson; D-Santa Held in Senate Barbara) Creates onerous reporting requirements for telecommunications providers, including real-time infor- Appropriations mation and annual reports regarding telecommunications. Oppose. Suspense File 6/18/20 Unemployment Insurance
Massive Unemployment Insurance Compensation and Tax Increase. AB 1107 (Chu; D-San Jose) Would Senate Governmental significantly raise employers’ payroll taxes to fund a 130% increase in unemployment payments just as Organization 7/2/20 California’s businesses are struggling to survive this pandemic-caused shutdown. Gutted and amended May 26, 2020 to a different subject area. Job killer and oppose tag removed. No Position/Former Job Killer 2020.
Increased Unemployment Insurance Costs and Payments. AB 3329 (Daly; D-Anaheim) Increases unem- Assembly Insurance ployment insurance payments in California in response to COVID-19 and costs California employers billions 3/9/20; Failed of dollars over the next 10 years. Assembly Insurance hearing canceled by author in response to employer Deadline concerns. Oppose. Water Supply and Quality
Levee Protection. AB 1958 (Cooper; D-Elk Grove) Allows local law enforcement to remove visual or physi- Senate Natural cal obstructions from levees to protect public safety. Support. Resources & Water 6/23/20 Workers’ Compensation
Establishes Costly “Conclusive Presumption” of Injury. AB 196 (Lorena Gonzalez; D-San Diego) Senate Labor, Public Significantly increases workers’ compensation costs for employers by “conclusively” presuming (non-rebutta- Employment & ble) that contraction of COVID-19 by all “essential workers” is a workplace injury. Establishes an extremely Retirement 5/5/20 concerning precedent for expanding presumptions into the private sector for COVID-19 issues, which the Workers’ Compensation Insurance Rating Bureau recently estimated will add billions in costs to California’s workers’ compensation system. Oppose/Job Killer 2020.
Establishes Costly “Conclusive Presumption” of Injury. AB 664 (Cooper; D-Elk Grove) Significantly Senate Labor, Public increases workers’ compensation costs for public employers and public and private hospitals by “conclu- Employment & sively” presuming (non-rebuttable) that exposure or contraction of communicable diseases, including Retirement 5/18/20 COVID-19, are caused by the workplace and defines required compensation to include non-workers’ compen- sation items such as “temporary housing costs.” Establishes an extremely concerning precedent for expand- ing presumptions into the private sector for COVID-19 issues, which the WCIRB recently estimated will add billions in costs to California’s workers’ compensation system. Oppose/Job Killer 2020.
Expands Costly Presumption of Injury. SB 893 (Caballero; D-Salinas) Significantly increases workers’ Failed passage in compensation costs for public and private hospitals by presuming that certain diseases (including COVID-19) Senate Labor, Public and injuries are caused by the workplace and establishes an extremely concerning precedent for expanding Employment & presumptions into the private sector. Oppose/Job Killer 2020. Retirement 5/14/20; Failed Deadline WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 17
Selection of Director General Offers Chance for New Start at World Trade Organization equitable market access for California tional Luncheon Forum to speak about products abroad and elimination of disin- Mexico’s negotiations into the USMCA. centives that impede the international • Dr. Ngozi Okonjo-Iweala, Nigeria competitiveness of California business. Dr. Okonjo-Iweala was the second The CalChamber is hopeful the major nominee for Director General of the WTO. trading economies can come to a consen- Dr. Okonjo-Iweala is a global finance A change in leadership at the World Trade sus on a reform of the WTO in 2021. The expert, economist and international devel- Organization (WTO) this summer may revamp should address the functioning opment professional with more than 30 provide an opportunity for a new begin- of the Appellate Body, encourage greater years of experience. Dr. Okonjo-Iweala ning at the only global international orga- transparency and enhance discipline for served as Nigeria’s Finance Minister from nization dealing with the rules of trade. members who fall behind on their report- 2003–2006 and 2011–2015, and briefly as On May 14, current WTO Direc- ing obligations. Foreign Minister in 2006, being the first tor General Roberto Azevêdo of Brazil woman to hold both positions. suddenly announced he will leave the WTO Candidates In her time as Finance Minister, Dr. position on August 31, a year before the As of July 8, the closing date for Okonjo-Iweala negotiated with the Paris formal end of his term. applications, the candidates for WTO Club of Creditors to wipe out $30 billion Azevêdo said in a statement that he Director General are as follows: of Nigeria’s debt and led reforms that timed his departure so the process of • Dr. Jesús Seade Kuri, Mexico enhanced government transparency and selecting his successor wouldn’t distract Undersecretary Seade was the first to strengthened institutions against corruption. the WTO’s next big ministerial conference, be nominated for the position of Director Dr. Okonjo-Iweala had a 25-year which now is likely to be delayed into 2021. General with the WTO. He is currently career at the World Bank, where she The next major WTO meeting could Mexico’s Undersecretary for North Amer- served as a development economist and be a turning point for discussions on ica and was chief negotiator of the North rose to the No. 2 position of managing the future of the organization. The American Free Trade Agreement (NAFTA) director. Dr. Okonjo-Iweala has received 12th Ministerial “M 12” meeting, June and the U.S.-Mexico-Canada Agreement many awards and recognitions as a top 8–11, 2021, is tentatively scheduled for (USMCA), referred to in Mexico as TMEC female leader in Africa and the world Kazakhstan. Modernization and reform of (Treaty of Mexico, U.S., Canada). including: Top 3 Most Powerful Women the trading system will be a major topic. Most recently, Undersecretary Seade in Africa (Forbes, 2012); Top 100 Most The discussion this summer will now served as the vice president of global Influential People in the World (TIME, center on from which continent or region affairs at the Chinese University of Hong 2014); Global Finance Minister of the the next Director General should hail. Kong-Shenzhen, prior to that he was the Year (Euromoney, 2005); and the Made- Previous Director General Pascal Lamay vice president of Lingnan University leine K. Albright Global Development was from France. of Hong Kong. Undersecretary Seade Award from the Aspen Institute in 2017. The conversation about the next has held numerous positions as a global Most recently, Dr. Okonjo-Iweala Director General may well help set the economic diplomat, including: princi- became an Angelopoulos Global Public tone and agenda of the membership orga- pal economist of the World Bank; senior Leader at Harvard University’s Kennedy nization. Regardless of its leadership, the advisor at the International Monetary School and currently serves on many Geneva-based organization is an import- Fund; Ambassador of Mexico to the boards including the Board of the African ant player in global trade. General Agreement on Tariffs and Trade Union’s African Risk Capacity (ARC) Director General candidates were (GATT); chief negotiator in the creation as the chair. Dr. Okonjo-Iweala earned a nominated by their governments start- of the WTO, and in the accession of Ph.D. in regional economics and develop- ing June 8. Candidates will be invited to Mexico to the Organization for Economic ment from the Massachusetts Institute of meet with WTO membership at a special Cooperation and Development; Mexican Technology. General Council meeting this month at Ambassador to the WTO and the first • Abdel-Hamid Mamdouh, Egypt which they can present their views and Deputy Director General of the WTO. Mamdouh was nominated to the WTO take questions. Historically, a new Direc- Undersecretary Seade earned a Ph.D. Director General position by Egypt, where tor General is appointed by consensus of in economics from Oxford University he has served as a negotiator since 1985 the General Council following a sever- in England, and as a chemical engineer and a senior WTO official since 1990. al-month period during which candidates at National Autonomous University of Mamdouh has held many positions at the have the opportunity to make themselves Mexico (summa cum laude). Dr. Seade is WTO, including: assistant to the deputy known to WTO members. fluent in all three official WTO languages director general of the GATT; senior coun- The California Chamber of (English, French and Spanish), as well sellor in the Trade and Services Division; Commerce, in keeping with long-stand- as Portuguese, and has conversational and director of the Trade in Services and ing policy, enthusiastically supports free knowledge of German. Investment Division, a post he held from trade worldwide, expansion of inter- The CalChamber hosted Undersecre- 2001 to 2017. national trade and investment, fair and tary Seade in January 2020 at an Interna- See Selection of Director General: Page 18 WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 18
Selection of Director General Offers Chance for New Start at WTO From Page 17 25-year career in trade, having been a • Minister Mohammad Maziad Mamdouh was the lead Secretariat key free trade agreement (FTA) strate- Al-Tuwaijri, Saudi Arabia official on the negotiation and drafting gist for Korea. During this time, Minister Minister Al-Tuwaijri was nominated of the GATT. Currently, he is a visiting Yoo took charge of the WTO affairs in for the Director General position at the industry professor at the University of the Korean Ministry of Trade, Industry WTO by Saudi Arabia. Minister Al-Tu- London and senior counsel at King & and Energy, and negotiated the Regional waijri began his career at the Saudi Brit- Spalding LLP. Mamdouh is an Egyptian Comprehensive Economic Partnership ish Bank Saudi Arabia where he spent 12 and Swiss national who speaks Arabic, (RCEP), the Korea-China FTA, and the years, eventually rising to the position English and French fluently. Korea-U.S. (KORUS) FTA, among other of group head of treasury and Board • Ambassador Tudor Ulianovschi, initiatives. member of HSBC Saudi Arabia. Minister Moldova Minister Yoo was the first director of Al-Tuwaijri then worked at JP Morgan Ulianovschi was nominated for the the new FTA Policy Division at theMin- Saudi Arabia as the managing director WTO Director General position by istry of Foreign Affairs and Trade, where and CEO, and went on to serve as group Moldova, where he recently served as she designed Korea’s FTA strategy in managing director, deputy chairman Minister of Foreign Affairs followed by 2005. This strategy resulted in Korea’s and CEO for HSBC Middle East, North serving as Deputy Minister of Foreign FTA network that includes 56 countries, Africa and Turkey. Affairs for several years. Under his at all levels of development. Most recently, Minister Al-Tuwaijri mandate, Moldova: ratified and imple- Minister Yoo has an M.A. in public served as Minister of Economy and mented the WTO Trade Facilitation policy from Seoul National University in Planning for Saudi Arabia from 2016 to Agreement and became a member of the Korea and a J.D. from Vanderbilt Univer- the present, where he led the effort to WTO Government Procurement Agree- sity. She was admitted to the New York increase the Kingdom’s diversification ment; finalized the Association Agree- State Bar in 2003. objectives and competitiveness. Minister ment with the European Union; signed • Ambassador Amina C. Mohamed, Al-Tuwaijri is a strong advocate of the a free trade agreement with Turkey; and Kenya U.N.’s Sustainable Development Goals. initiated consultations on a free trade Ambassador Mohamed was nomi- He is a former Saudi Air Force pilot agreement with European Free Trade nated by Kenya for the position of WTO and has served on 45 boards, committees Association (EFTA) countries. Director General. Ambassador Mohamed and commissions. Minister Al-Tuwaijri Minister Ulianovschi was the top served as Kenya’s Permanent Repre- holds an M.B.A. in finance with honors Moldovan diplomat in Geneva between sentative and Ambassador to the WTO from King Saud University. 2016 and 2018, serving as the Ambassa- from 2000 to 2006 and was subsequently • Dr. Liam Fox, United Kingdom dor to Switzerland and Permanent Repre- chairperson for multiple WTO deci- Dr. Liam Fox was nominated for the sentative to the United Nations in Geneva sion-making bodies, including: the 2015 position of WTO Director General in the and WTO. During this time, Minister Ministerial Conference, the 2005 General final hour by the United Kingdom. Dr. Ulianovschi served on and chaired vari- Council, 2004 Dispute Settlement Body, Fox was first elected to Parliament in ous committees including: chairman of and the 2004 Trade Policy Review Body. 1992 and served there until 2010, holding the WTO Balance of Payments Commit- Ambassador Mohamed then became several ministerial roles, including Lord tee, president of the Trade and Develop- the Permanent Secretary of the Minis- Commissioner of the Treasury and Minis- ment Board at the U.N. Conference on try of Justice, National Cohesion and ter of the Foreign and Commonwealth Trade and Development (UNCTAD), vice Constitutional Affairs from 2008 to 2011 Office, where he answered on Trade Aid president of the General Assembly at the where she presided over the 2010 Consti- and Policy in the House of Commons. World Intellectual Property Organization tution of Kenya. Ambassador Mohamed In 2010, Dr. Fox was then appointed (WIPO), and president of the Steering also served as Assistant Secretary-Gen- Secretary of State for Defense. From 2016 Committee on Trade at U.N. Economic eral of the U.N. and Deputy Executive to 2019, Dr. Fox served as U.K. Secretary Commission for Europe (UNECE). Director of the U.N. Environmental of State for International Trade, building a Minister Ulianovschi also previ- Programme (UNEP) from 2011 to 2013. new department of government overseeing ously held a position in the private Most recently, Ambassador Mohamed the U.K.’s first independent trade policy sector as senior vice president of global served as Kenya’s Foreign Affairs and in 40 years following Brexit. Dr. Fox has government relations for a multinational International Trade Minister from 2013 to discussed the theme of trade, prosperity company based in Canada. Minister 2018 where she facilitated foreign direct and security throughout his career, and Ulianovschi is a Ph.D. candidate at the investment inflows to Kenya, increas- is an advocate of the International Trade Free International University of Moldova. ing foreign direct investment (FDI) into Centre’s “SheTrades” initiative. He speaks Romanian, English, Russian Kenya by 400%. Dr. Fox was born in Scotland, where and French fluently and has intermediate Ambassador Mohamed earned a he earned an MB ChB from the Univer- knowledge of Spanish and Arabic. master’s degree in law from Taras sity of Glasgow Medical School. He then • Minister Yoo Myung-Hee, South Shevchenko University in Ukraine and worked as a general practitioner, divi- Korea received a postgraduate diploma in inter- sional surgeon and civilian army medical Minister Yoo was nominated for national relations as a Chevening Fellow officer before being elected to Parlia- WTO Director General by the Republic at Oxford University. She is a UNITAR ment. Dr. Fox also previously worked as of Korea, where she is the first female Fellow and is fluent in English, Russian, a speech writer to Prime Minister Marga- trade minister. Minister Yoo has had a Kiswahili and has knowledge of French. See Selection of Director General: Page 19 WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 19
November Ballot Takes Shape with Assignment of Proposition Numbers Secretary of State Completion of Prison Term. Placed App-Based Transportation and Delivery Alex Padilla has on the ballot by the Legislature through Drivers. Initiative Statute. Establishes assigned propo- ACA 6. Will permit parolees to vote. criteria for determining whether app-based sition numbers • Proposition 18. Allows Some transportation (rideshare) and delivery to the legislative, 17-Year-Olds to Vote. Placed on the drivers are “employees” or “independent initiative and ballot by the Legislature through ACA 4. contractors.” Requires companies with referendum measures set to appear on the Will allow 17-year-olds to register to vote independent contractor drivers to provide November 3 General Election ballot. in a primary or special election if they are specified alternative benefits, including The proposition numbers and brief U.S. citizens, a resident of the state and minimum compensation and health care descriptions appear below. Where the will be at least 18 years old at the time of subsidies based on engaged driving time, California Chamber of Commerce Board the next general election. vehicle insurance, safety training and of Directors has adopted a position, that • Proposition 19. Property Tax sexual harassment policies. Restricts local action is noted. Protection for Seniors, Severely regulation of app-based drivers; crimi- • Proposition 14. Authorizes Bonds Disabled, Families and Victims of nalizes impersonation of such drivers; to Continue Funding Stem Cell and Wildfire or Natural Disasters. Placed requires background checks. CalChamber Other Medical Research. Initiative on the ballot by the Legislature through supports. Statute. Authorizes $5.5 billion in ACA 11. Starting April 1, 2021, will • Proposition 23. Authorizes State state general obligation bonds to fund permit certain property owners to buy Regulation of Kidney Dialysis Clinics. grants from the California Institute of another primary residence and keep the Establishes Minimum Staffing and Regenerative Medicine to educational, property tax break of the home they are Other Requirements. Initiative Statute. nonprofit and private entities for stem selling within two years of the sale of the Among other provisions, requires at least cell and other medical research, ther- original primary residence. one licensed physician on site during treat- apy development and delivery; medical • Proposition 20. Restricts Parole ment at outpatient kidney dialysis clinics; training; and construction of research for Non-Violent Offenders. Authorizes authorizes Department of Public Health to facilities. Felony Sentences for Certain exempt clinics from this requirement due • Proposition 15. Split Roll Offenses Currently Treated Only as to shortage of qualified licensed physi- Property Tax. Initiative Constitutional Misdemeanors. Initiative Statute. cians if at least one nurse practitioner or Amendment. Increases funding for K–12 Imposes restrictions on parole program physician assistant is on site. public schools, community colleges for non-violent offenders who have • Proposition 24. Amends Consumer and local governments by requiring that completed the full term for their primary Privacy Laws. Initiative Statute. commercial and industrial real property offense. Expands list of offenses that Permits consumers to prevent busi- be taxed based on current market value. disqualify an inmate from this parole nesses from sharing personal informa- Exempted are residential properties; program. Authorizes felony charges for tion. Triples maximum penalties for agricultural properties; and owners of specified theft crimes currently charge- violations concerning consumers under commercial and industrial properties with able only as misdemeanors, including age 16. Establishes California Privacy combined value of $3 million or less. some thefts where the value is between Protection Agency to enforce and imple- CalChamber opposes. $250 and $950. CalChamber supports. ment consumer privacy laws and impose • Proposition 16. Repeals Proposi- • Proposition 21. Expands Local administrative fines. Requires adoption of tion 209 of 1996. Placed on the ballot by Governments’ Authority to Enact substantive regulations. the Legislature through ACA 5. Repeals Rent Control on Residential Property. • Proposition 25. Referendum to the Proposition 209 ballot initiative Initiative Statute. Amends state law to Overturn a 2018 Law that Replaced approved by voters in 1996 to prohibit allow local governments to establish rent Money Bail with a System Based on the state from discriminating against or control on residential properties more Public Safety Risk. Asks voters to granting preferential treatment to any than 15 years old. Allows rent increases approve state law passed in 2018 that individual or group on the basis of race, on rent-controlled properties of up to replaces the money bail system with one sex, color, ethnicity or national origin 15% over three years from the previous providing for pretrial release from jail in the operation of public employment, tenant’s rent above any increase allowed based on a determination of public safety public education or public contracting. by local ordinance. CalChamber opposes. or flight risk, and limiting pretrial deten- • Proposition 17. Restores Voting • Proposition 22. Changes tion for most misdemeanors. Rights for Convicted Felons Upon Employment Classification Rules for
Selection of Director General Offers Chance for New Start at WTO From Page 18 More Information prepared by Nicole Ellis, CalChamber ret Thatcher. He is the author of the book international affairs assistant. For more information about the WTO, titled Rising Tides, published in 2013, Staff Contact: Susanne T. Stirling and is currently working on another book please visit www.calchamber.com/wto. Biographies of WTO candidates about pandemics. WWW.CALCHAMBERALERT.COM
CALIFORNIA CHAMBER OF COMMERCE JULY 10, 2020 • PAGE 20
Conditions Right for Delay in Minimum Wage Increase The 2016 legis- omy, in the words of the statute, is “to with economic sensitivity; if postpone- lation setting ensure that economic conditions can ment is not indicated under this dire up the schedule support a minimum wage increase.” This economic circumstance, then just when to increase the is how the assessment works: would this offramp apply? minimum wage, • Is total seasonally adjusted nonfarm The Governor has an opportunity SB 3 (Leno; employment in June 2020 less than in by August 1 to help some of the most D-San Fran- March 2020, distressed businesses get back on their cisco), enabled or feet and rehire their workers by using his the Governor to postpone by a year any • Is total seasonally adjusted nonfarm existing authority to postpone for one of the annual step increases in the event employment in June 2020 less than in year the automatic increase in the mini- of a major economic recession or state December 2019, mum wage. budget crisis. and A fiscal analysis from the Department Sponsors of the bill touted this tempo- • Are retail sales and use tax revenues of Finance is expected at the end of this rary offramp as an improvement upon the for 2019–20 less than those revenues for month. If the analysis concludes that then-proposed minimum wage increase 2018–19? economic conditions allow for suspen- ballot measure. Including the offramp Current state conditions translate to sion, then the Governor would be justi- likely made the difference in the bill’s checkmarks for all three criteria. The fied in using his authority to postpone the passage. most conspicuous characteristics of this 2021 increase in the minimum wage until recession are massive unemployment and 2022. The jobs of thousands of low wage Criteria for Postponing Increase crashing retail sales. workers may hang in the balance. The purpose of assessing the econ- The minimum wage law is designed
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